Virtus Investment Partners (NasdaqGS: VRTS), the Connecticut-based investment manager, announced after the close of U.S. markets Monday that it will acquire a majority stake in ETF Issuer Solutions, a provider of white label ETF solutions.
New York-based ETF Issuer Solutions “will become a Virtus affiliate and continue to operate as a multi-manager ETF platform, providing investors access to differentiated investment capabilities from select subadvisers,” according to a statement.
The transaction is expected to close in March and terms of the deal were not disclosed.
Founded in 2012, ETF Issuer Solutions currently manages three existing ETFs “has seven additional ETFs in registration with the Securities and Exchange Commission. All of the company’s ETFs are managed by external subadvisers,” according to the statement.
Current offerings from ETF Issuer Solutions include the InfraCap MLP ETF (NYSEArca: AMZA), which debuted in October. Although AMZA is one of the newest entrants to the crowded MLP ETF space, the new ETF is unique in thatcan employ hedging via derivatives and even short MLPs during periods of increased market stress. [MLP ETF Update]